Precipitation water fee - Dresden

The precipitation water fee was introduced in Dresden, Germany in 1999 by the Dresden urban drainage utility company to reduce the amount of rainwater reaching its mixed sewage system and to decrease the amount of impervious surfaces on private properties. The fee for individual property owner's can be reduced by increasing the surface area for infiltration through nature-based solutions, including e.g. green roofs, collecting and using rainwater and property landscaping. The fee came as a response to the increasing strains on the city’s sewage system which have emerged as a consequence of climate change, including resultant droughts and heavy rainfalls. This comes in light of the immense investments the city has had to allocate for the protection of its wastewater facilities as a consequence of flooding. About 30% of the costs for the planning, operation and maintenance of the sewage system and wastewater treatment plants are caused by rainwater treatment.

Overview

Type of instrument:

Economic and fiscal instruments›Disincentives (e.g. taxes to change behavior, access fees, payments)

Challenges addressed

Soil quality
Water management (e.g. reuse)
Flood risk: pluvial and fluvial / soil permeability

Consideration of nature-based solutions:

The fee focuses on decreasing the amount of rainwater flowing into the sewage system and aims to support natural infiltration processes by decreasing the area of sealed surfaces within the city.

Targeted (peri-)urban areas:

Green areas for water management

Good practice characteristics:

Effective

Support multifunctional NBS

Sustainable in the long-term

Locally appropriate

Potential to be replicated / upscaled

Governance

Government body/bodies

Initiating body:

City of Dresden

Instrument design:

Details about how the instrument was designed:

The precipitation water fee is included in the Statutes of the State Capital Dresden on the levying of wastewater charges (wastewater fee statutes) and was adopted by the city council.

Instrument implementation:

Type of involvement:

Based on a property’s actual imperviousness, property owners have to pay an imperviousness fee ( (1.56 EUR/m2/ year for areas from which rainwater reaches the sewage system). To ensure accuracy, Dresden uses satellite imagery and automated image analysis. Households are informed about how much they have to pay based on a satellite image assessment. If the homeowners disagree with the assessment, they can apply to have it adjusted based on an application. In such a case, the property’s infiltration system is assessed based on its dimensions and effectiveness. The infiltration of other surfaces, such as green roofs, can also be taken into account to receive a fee reduction. Additional reductions are available for homes installing rainwater utilisation systems (e.g. for use in toilets, washing machines or garden irrigation). Technical and planning guidelines are made available for new construction and retrofits to inform citizens about reduction factors for different surfaces. A guideline for the usage of rainwater by the city of Dresden suggests options for how private buildings and land can be managed to increase rainwater infiltration. Nature-based solutions which help to reduce the fee include green roofs, collecting and using rainwater and property landscaping.

Type of non-governmental actors involved:

Implementation of NBS (e.g. with government funds)

Targeted actors:

Private: household, real estate developer, business , financial

Financing

Sources of funding:

Public local authority’s budget

Budget:

Unknown

Details about instrument financing:

Stadtentwässerung Dresden (urban drainage system company) invests around €30 million annually in the renovation and expansion of sewers and wastewater treatment plants. The technological catch-up since 1990 has cost around €1 billion. The amount generated by the fee or the cost of establishing the measure are unknown.

Monitoring, evaluation and impacts

Is a monitoring framework in place?:

Did an evaluation take place?:

Achieved outcomes and impacts:

Between 1995 and 2015, 450 hectares of impervious surfaces were removed and run-off was reduced by 3,000 million litre per year, despite a population growth of 12%. The population of Dresden pays an average of 0.20 EUR per person for 100 liters of waste or rainwater sewage, which is lower than the German average.

Success factors and lessons learned:

In light of more frequent and severe heavy rain events, an precipitation water fee can provide incentives for property owners to reduce the amount of rainwater reaching its mixed sewage system and to decrease the amount of impervious surfaces. This model can potentially be replicated in other cities facing similar challenges. The instrument is well linked with other instruments to incentivize the use of nature-based solutions in the city and is accompanied by guidance for the usage of rainwater and options for how private buildings and land can be managed to increase rainwater infiltration.

Sources and further information

References

List of references:

Stadtentwässerung (2020). Häufige Fragen. Available at: https://www.stadtentwaesserung-dresden.de/service/haeufige-fragen/ (accessed: 20.09.2022)

Sewage fee statutes. Dresden: State capital Dresden

Addressing climate change in cities - Policy instruments to promote urban nature-based solutions. Ecologic Institute and Sendzimir Foundation.